The Rocket-Science Behind Getting Rich (For College Students)

Rocket Science

Wonder if there was a PG Diploma in ‘The Science of Getting Rich’! Or a certification course in ‘Creating Sustainable Wealth’?

There is no need because the rocket science behind getting rich is not rocket science at all!

If there is anything, it is a mix of awareness, discipline and patience.

Today, we will decode the five steps to becoming rich:

Think Rich – It certainly doesn’t mean that you start feeling rich and begin spending on things you can’t afford. Thinking rich means promising yourself that you will take all necessary steps to getting rich. In our last blog, we said you must sort your relationship with money. It is very important to figure out what are your objectives for creating wealth – buying luxuries, securing your and your loved ones’ future or giving back to the society. Whatever may be your reason for accumulating wealth, one thing is clear, you cannot afford to be ignorant about money and its use. So, first, make a promise to yourself that you need to become wealthy by being financially aware and disciplined.

Understand How Money Grows – There is an adage that money attracts money, which can be translated to, ‘more investments means more returns’. So, if you have Rs. 10,000 in your pocket – would you squander it over clothes and shoes or invest it so that it swells your portfolio and gives more money in returns? Once you realise this fundamental nature of money, you are halfway across the road to becoming a millionaire. So, before you spend money, save and invest a fraction of it to keep your portfolio growing.

Become a Smart Spender – Don’t be a cautious spender, be a smart spender – know which expenditures give you the most returns. By suggesting that you may invest more and more money, we don’t mean that you stop spending altogether. It means that you make informed decisions on things that you want to spend your money on. For example, instead of overspending on fancy meals and outings, you could pay for a workshop or a certification course that will add to your quiver of skills and knowledge. More often than not, college students fail to make a rational decision on how to spend their limited cash. Many students have revealed that they missed on good educational opportunities because they were left with no money to spare after binge shopping and other splurges. Don’t be impulsive. People in control of their desires always find themselves prepared to tackle challenges.

Be Disciplined – Being disciplined in your life helps you not only to succeed in your studies and career, but it also enables you to grow rich! When you manage your time well, meticulously plan for future events and prepare for tests, tasks and other challenges well in advance, you invariably plan your finances, too. Ever noticed a friend who always has the money to pay for dance classes as well as for the college picnic – even when s/he gets the same pocket money as you? The verdict is clear; disciplined students have a better handle on their financial position.

Find a Rich Mentor – Interact with your wealthy uncle or aunt or get in touch with a seasoned professional to get tips on creating wealth. In spite of your perception, in most cases, these valuable bits of advice would come at no cost at all! Once you have determined to be rich, changed the way you lead your life and understood the concept of money, simply turn to a wealthy mentor who has walked the road to riches and has a lot of experiences and wisdom to share. Don’t hesitate; everyone likes to have a good disciple who is willing to learn!

Many students, at this point, would ask, “What difference would it make if we saved a little sum after curbing our expenses? A few hundred rupees won’t make us rich, isn’t it?”

Well, as the famous saying by Lao-Tzu goes, ‘A journey of a thousand miles begins with a single step,’ your first tiny steps towards wealth creation would lead you to riches over the course of time. Did you know that you can start investing in mutual funds (through SIPs) with just Rs 500 per month?

With time on your side, you stand to make the most of your little, yet regular investments – thanks to the power of compounding – and create a significant portfolio in next ten years, giving you ample financial freedom to pursue your dreams and passions.

Dr. Celso Fernandes is Goa’s leading financial advisor and a crusader of financial literacy amongst the youth of India. An author and a friend to many happy families who have benefitted from his easy-to-follow financial advisory, Dr. Celso – through his firm, Nave Marg, also drives the ‘Super Young Achievers Club’, guiding students to embrace financial literacy, helping them become millionaires before they turn thirty years of age.

Announcement: Dr. Celso is conducting a free seminar on ‘How to Achieve Financial Freedom’, especially for college students, at the Holy Spirit Parish Hall (2nd Floor) at 11:30 am on 29th April 2018. Students and parents are cordially invited.



5 Things You Can Start in College to Ensure Financial Freedom Early in Your Life


Most often, securing a future, especially in our country, means attaining higher education and landing a plush job. Wish that alone was true.

A TimesJobs survey published recently revealed a scary picture where as high as 50% of Indian employees are in severe financial distress. This comes as a surprise as the Indian economy is faring much better than most advanced nations, and also, the employees’ take-home packages are much higher than what they used to be a decade-and-half ago!

The reasons for the rising financial stress among the Indian working class are aplenty; from the ever-rising inflation to compulsive online buying to increasing cost of maintaining a good lifestyle. However, the major problem behind the mounting financial stress among Indians is owing to lack of financial literacy and financial discipline.

Financial stress leads to depression, unhappiness and pain.

Yes, while we like to believe that we are financially disciplined and know how to put money to its best use, the truth is that a majority of us never feature ‘financial planning’ in our list of priorities. While we pass out the college with flying colours and a soaring spirit, take up important, well-paying jobs; still, most of us struggle to create sufficient funds for emergencies, major life events such as the wedding or retirement.

“So, what can we do to avoid a future filled with financial distress?” you’d ask.

The good news is that if you are in school or college, there is still hope for you to ensure a future that is financially secure. You have the gift of time.

Here are five simple things that you can do while you are still in college to ensure that you take the right path towards a future of financial abundance.

Assess Your ‘Money Emotion’: Even before you plan to work towards attaining financial independence, find out your perception of money. Do you find it evil or overly tempting? Do you feel it is the cause of all evils or you find it important to alleviate social pains and meet emergencies? Whatever may your ‘money emotion’ be, evaluate it in a real-world scenario and map it with your dreams and ambitions.

Make Financial Goals: It is much easier to chalk out your long and short-term financial goals once you understand your psychological relationship with money vis-à-vis your life goals. Of course, your life is going to take many twists and turns, and it is difficult to predict the lifestyle you would eventually have, but, in any case, you need to be prepared for some life-events that cost a lot of money (wedding, your first car, buying a house, starting a family, striking off items on your bucket list, etc.).

Differentiate Between Needs & Wants: Needs are the things that you require to survive. Wants are desires you have. So, water is your need; a Smartphone isn’t. Often, in order to satiate our cravings, we make utterly senseless shopping decisions and end up spending more than what we can afford. Credit cards, if not managed astutely, can fuel chronic debt cycles, and as a result, mounting financial stress. There is no other way of conjuring money out of thin air than letting it stay unspent in your pocket. So, choose wisely between what you want and what you need when you go out shopping the next time.

Invest Before Spending: If you’d believe one of the world’s wealthiest men, investing before spending is the mantra to grow rich. Warren Buffet famously said that before paying anyone else, we must pay ourselves. This means that we must make some investments (ideally 25% of the income) before we splurge our money on wants and necessities. You would wonder where to invest the meager amount that is just a fraction of your pocket money? Well, we will come to it in the next point.

 Commit to Long-Term Regular Investments

Your precious savings – earned by sacrificing your wants – must not rot in piggy banks and fixed deposits and savings accounts. You would want to earn the best return on your investment, isn’t it? This is why you must choose a good mutual fund and invest regularly through SIPs (Systematic Investment Plans). You can start with as low as INR 500/- per month and earn a handsome return on your investments. However, it is important to be disciplined in paying SIPs regularly (increasing them as you start earning), month after month, at least for ten years to ensure a huge portfolio that can take care of expenses related to any life event.

Did you know that if invested smartly, your money starts working for you, earning more and more money without you having to sweat for it?

Start now. Invest regularly. Let the effect of compounding increase your pool of money.


Dr. Celso Fernandes, Goa’s Financial Doctor, is on a mission to create awareness about financial literacy and financial independence, especially amongst the youngsters. He is the author of three much-loved books and actively participate in various social causes.

How to Become a Millionaire Before Turning 30?

Most youngsters scrape through their graduation, funding their lifestyle with the pocket money given by generous parents, dreaming of a day when they would have an endless pool of money without even working for it! A perfect dream – you’d say. But then, that’s just a dream – or, is it?

How to grow rich
Grow your wealth with financial discipline

Well, just like every other teen, Salvio had recently joined graduation and wondered how early he could start earning, and saving, to build his magical pool of money. While his peers dreamt of bikes, movies and beer, Salvio dreamt of being a millionaire at 30. But, could he achieve it?

At the young age of 17, in his first month at college, Salvio’s father took him along to attend a financial seminar. And that, dear readers, was the turning point in Salvio’s life. It was the day Salvio discovered the secret to financial freedom – the proverbial road to riches. As soon as he returned home, Salvio decided to expand his knowledge by reading more about wealthy people to emulate their success. He was surprised to learn that most rich people lived below their means and delayed gratification. This means, they did not spend on expensive cars or mansions but saved money before spending it.

He noticed that all rich people had a few things in common that had actually made them rich. Salvio observed that wealthy people:

  • Set long-term goals
  • Avoid frivolous spending
  • Start saving and investing early in life
  • Live below their means

Today, Salvio is 29 years old. He has been investing in various mutual funds through SIPs for the past 12 years and holds just short of a million rupees across his investments. By the end of 2018, as he turns 30, he would have achieved his goal of being a millionaire before 30!

 Here’s how Salvio fulfilled a dream most people only think about:

At the age of 17, Salvio set his goal of being a millionaire before 30. Besides, he wanted a self-growing pool of money that would regenerate each time he took out a small portion to service his requirements, such as funding his higher education or helping his parents fund emergency repairs to their family home.

Unlike his other friends who spent their evenings over coffee, movies and unnecessary shopping, Salvio paid fifty percent of his pocket money at the beginning of each month into a systematic investment plan suggested by his father’s wealthy friend, Uncle Sebastian. While it was difficult in the beginning, Salvio was soon able to differentiate between his wants and needs – for example, he needed a healthy breakfast to start his day, but he only wanted a cup of cappuccino with his friends during lunch break. Or, he did need a pair of sports shoes to exercise, but buying that expensive pair of white sneakers was just a waste of money.

Within a year of investing, Salvio was able to see the result of his discipline. The seed of his future wealth had germinated. The money in his portfolio had started growing bit-by-bit. Now, Uncle Sebastian advised Salvio to increase his income by taking up a part-time job. He also advised Salvio to pay himself first – that is, use 20 percent of his salary to feed his portfolio, and then use the remaining amount for necessities.

Starting with only 2,000 rupees a month at the age of 17, Salvio consistently increased the amount he invested as his income increased. He also invested all the monetary gifts from family and friends into his portfolio through ‘Top-ups’ and continues to do so. As a result, his portfolio continued to grow, and, over time, the magic of compounding worked to help him realise his dream of turning a millionaire before 30!

From this very fund, Salvio took out money to pay for a diploma course at 24 that added to his skill set and helped him secure a promotion as well as a better salary. He also withdrew lump sums to take his family for a vacation and pay for some urgent repairs to their home. Today, as Salvio grows richer, many of his classmates are living paycheque to paycheque, only dreaming about the wealth Salvio continues to grow.

Salvio’s golden rules

Just like Salvio, you can also fulfil your dream of being a millionaire before 30. All you need to do is:

  • Differentiate between needs and wants
  • Save money before spending
  • Start investing your savings today

NaveMarg and Dr Celso Fernandes, author of three much-loved books and a leading crusader for financial literacy in Goan youth, help students secure a brighter future by spreading financial awareness and giving personalised guidance on choosing the right investments. Dr Celso believes that if all the students become financially free and not depend on their jobs to survive, they can pursue careers of their choice, create and innovate lovely things and be happy and caring citizens of India.

Why Are There Only a Few Millionaires Today?

Secret of becoming a millionaire
The Millionaire Club

When you are young, and at the threshold of starting your professional life, no dream seems unachievable. A promising career, a top-end car and a picture-perfect house with a loving family, why should life be any less than this?

Yet, at the grindstone of life, only a few come out polished and achieve every bit of that marvellous dream. While this may be a disheartening revelation for a majority of people, the truth is that only a few really understand and follow simple financial lessons right from a young age to achieve what most only dream about.

The secret to becoming a millionaire is . . . there is no secret, just plain, simple financial discipline.

Being disciplined is one thing that is drilled into our heads by our parents, teachers and mentors right from a young age. However, most of us tend to shun discipline and good practices and enjoy being moody, impulsive and spontaneous. Well, nothing wrong with that, but guess how many people achieved great success or wealth by doing things as and when their mood struck?

The same principle applies to financial well-being. Let’s look at the example below to better understand how financial discipline always ensures a better future:

Tracy and Tara are best buddies right from their school days, and their friendship continues as they study in the same college and course. Both were happily enjoying the college life.

Tracy and Tara both came from similar family backgrounds; educated middle-class families. They received almost the same amount of pocket-money. Still, Tracy always found herself broke much before the end of the month and often borrowed money from Tara, who, to Tracy’s amazement, always had sufficient funds to pay for the right workshop and enjoying a movie with friends, and even spare money to lend!

One day, distressed with all the chronic debts she had taken from Tara and other friends, Tracy silently wept at the cafeteria table. Over time, her debts had swelled up to thousands of rupees, her friends, who had lent her money, were now continually asking her to repay. She didn’t have any money to repay the several loans she had taken, and she didn’t dare to tell this to her parents fearing she would lose their trust.

Seeing her friend in distress, Tara comforted her and offered to pay all her debts. Tracy was incredulous and much relieved. She hugged her friend and told her how grateful she was.

“But how are you gonna arrange such a big sum? Are you going to borrow from your parents?” Tracy asked Tara.

“No, I will draw from my investments. But before I give you any money, you would have to promise me that from being financially illiterate, you would become financially literate.”

Tracy was much surprised to hear that Tara already had investments, even without working anywhere. But she was also inspired to be financially independent like her friend and never get into the nasty cycle of debts.

Tara later told Tracy that though they got the same pocket-money, they spent it differently. While Tracy made impulsive buying decisions and spent without prioritising her needs and wants, Tara made it a point to spend her money wisely, differentiating between necessities and leisure. This meant that Tara always had money to pay for training and workshops that added skills to her resume, as well as, money to buy the expensive jacket during the sale. Tracy missed on all these and ended up spending a great deal of money on tidbits, missing on gainful purchases owing to lack of money. She also courted debt, which further deteriorated her financial position.

Just like Tracy, most of the youngsters believe they are going to be millionaires and enjoy good things in life that only money can buy. But only a few who follow these golden rules (listed below) mint millions at a young age:

  • Differentiate between needs and wants
  • Save/invest before spending
  • Start investing today

Tara started investing with just INR 500 per month in mutual funds through SIPs (Systematic Investment Plans). She also invests all the monetary gifts from family and friends into her portfolio through ‘Top-ups’ and has her financial goals set. She is certain that before she turns 28 years, she would become a millionaire. All she has to do is keep investing in her SIPs without withdrawing any money from the portfolio and keep increasing the SIP amount bit-by-bit as her income grows.


NaveMarg and Dr Celso Fernandes, author of three much-loved books and a leading crusader for financial literacy in Goan youth, help students secure a brighter future by spreading financial awareness and giving personalised guidance on choosing the right investments. Dr Celso believes that if all the students become financially free and not depend on their jobs to survive, they can pursue careers of their choice, create and innovate lovely things and be happy and caring citizens of India.

Know Your Tax


The word ‘Tax’ fills despair in an average Indian’s heart. Forever, the citizens of this country are trying innovative ways to avoid paying taxes, some outrightly fraudulent and illegal. There is no surprise then that less than 3% of India’s vast population pays taxes on the income they earn.

What is more surprising is that each of us demands better infrastructure, opportunities and facilities from the government. Ever imagined how the government (from any party) would be able to pay for the nation’s collective progress if no one funds it?

Yes, we all have the moral and national obligation to fund our government in the form of taxes. With the tax paid by us, we all get better roads, efficient energy, stronger defence and a heap of subsidiaries enjoyed by different factions of society.

So, let’s get one thing straight. Taxes are good and we must pay them.

It is important, however, to know your tax. You must know which applicable tax category you fall in, what tax deductions and benefits you are entitled to and most importantly, when is the time for paying the tax.

Through this blog, we are clarifying a few concepts related to taxation in India, especially for the salaried class.

Previous Year and Assessment Year

Many of us often get confused with these two terms. Previous Year is the financial year in which a person’s earnings become liable for taxation. Assessment Year is the financial year in which the person has to file the income tax return. In India, a financial year is a 12-month period that starts from 1st April and ends at 31st March.

The current financial year started on 1st April 2017 and will end on 31st March 2018. For us, the previous year would be FY 2017-18 and we are liable to pay tax for the income earned in the previous year in FY 2018-19, i.e., the new financial year that will begin on 1st April 2018 and will end on 31st March 2019.

Income Tax Return

A tax return is essentially a form that you fill and submit to the Income Tax Department of India with the details of your income and tax. There are several different types of Income Tax Returns (ITRs)for varied classes of assesses (see the chart below):


Income Tax Slab

Tax slab


  • Surcharge – 10% for income b/w INR 50 lakh – 1 Crore and 15% for income above INR 1 Crore
  • Rebate of up to INR 2,500 for taxable salary up to INR 3.5 lakh
  • Education and higher education cess of 3%

Note that from July 2017 onwards, it is mandatory to furnish your Aadhar number while filing individual tax returns.


While the Income Tax Department keeps advertising the last date for filing income tax returns through newspaper, radio and TV ads, it generally occurs at the end of September in the Assessment Year for businesses and end of July for individuals.


Of course, there is a lot to know about the taxation which we will take up in our upcoming blogs. Till then, create/login to your account in and explore more about the tax regulations, deductions and more. Filing your return on the Income Tax Department’s portal is not just easy, it is free, too! With a little browsing, you can get the hang of it and can easily file your returns in the due timeframe.

Give Yourself the Gift of Compounding This New Year

2018 New Year


So, do you have your New Year resolutions set yet?

Well, while you resolve to get better health or roam the world or add new skills to your resume, you cannot ignore the need for creating sustainable wealth, which, incidentally, will come handy in realising most of your personal goals, year after year.

Wealth creation is often on everybody’s mind. However, most of us find it quite difficult to achieve it. We generally equate wealth creation with the rich or people who have very high salaries or run highly successful businesses.

This is not quite true!

Wealth creation indeed requires lot of patience and perseverance, but it is not impossible for people who have limited means.

“But how?” You’d ask incredulously.

Well, it is not a secret; if you know how compounding works.

Albert Einstein said that compounding is the world’s eighth wonder. He was not wrong. Compounding is a method of calculating returns where the interests or returns earned on an investment too yield interest. Confused, are you?

Consider a situation where you have invested INR 10,000 in an investment scheme that yields you a compounded interest of 10% each year. What do you think your total returns would be?

Well, in a period of ten years, you would have created a corpus of INR 25,937.42, earning an interest of INR 15,937.42. Had you invested in a scheme paying simple interest, you would have earned an Interest of only INR 10,000 over the same period. Read more about the Power of Compounding.

Mutual funds, especially when you invest through SIPs (Systematic Investment Plans), earn you great market returns along with the goodness of compounding. There are millions around the world who are leveraging mutual funds to create enormous wealth. But, like Rome, great wealth cannot be built in a few years.

Try following the below mentioned rules to make your resolution of getting wealthy come true:

  1. Start Investing Now: Did you know that you can invest in mutual funds with as low as INR 500? Yes, you do not require to invest large sums of money to build a great portfolio. Start investing with an amount you are comfortable with and keep increasing it gradually as your income increases.
  2. Follow the 25% Rule: Before paying others, pay yourself. Strive to clear all your debts – and remain debt free, and before spending your earnings, invest 25% of it in good mutual funds. When you invest before you spend, you will never fall short of money to save or invest.
  3. Distinguish between Needs & Wants: Warren Buffet, one of the world’s richest men, says that if you don’t stop buying things you want, you would soon end up selling things you need. It is important that you buy only what you need and curb your desires, especially in this era of incredible online sales that lure you into buying things you don’t need.
  4. Be Consistent. Invest for a Long Period: The key to riches is in small yet consistent investments over a long period of time – say, upwards of 10 years. When you start investing in mutual funds through small SIPs, month on month, your portfolio will gradually start to grow big. Your portfolio may seem puny in the initial years, but it is bound to make you ecstatic after the first three years of investments – it is then when you start to realize the power of compounding growing your corpus.
  5. Get a Good Advisor: While being self-read and informed of the market moves is a good thing, it helps when you take professional help. Try looking for someone who not only commands good knowledge of the market but is also trustworthy.

Nave Marg, under the guidance of Dr. Celso Fernandes – author of two much-loved books on finance and a trusted financial advisor, is on a mission to spread financial awareness in Goa and the rest of the country.

Nave Marg and Dr. Celso Fernandes wishes all the readers a joyous and prosperous New Year 2018!


Power of compounding in mutual funds

Power of compounding

Imagine stacking away a pile of currency notes in a cupboard during your childhood years, which you earned as pocket money from your parents. After some years, say ten, you go back to that cupboard and take a look at that stack of notes. Surely, you would find as many notes of money as were stored by you originally, not a penny more, not a penny less.

Just consider this; had you made an investment of the same amount of money in a mutual fund, you would have reaped some return on that investment, by the simple virtue of leaving that money undisturbed in an investment.

The theory of compounding

Investing in mutual funds yields the benefit of compound returns, which means that an investor earns interest returns even on the interest earned by him. By addition of such returns in the amount of existing investments, the overall return on investment is amplified each time an interest is earned. Mutual funds reward an investor by staying invested for a long period of time.

Take for example

Let us take a simple example to demonstrate the effect of compounding on a mutual fund investment. A mutual fund which yields a return of 10% over a period of year, would amount to a closing balance of 110,000 at the end of one year, for an amount of 100,000 invested at the beginning of the year. Next year, the amount of 110,000 will be taken as the base amount on which an interest of 21,000 will be paid out at the rate of 10%, resulting in a corpus of 231,000, if an additional 100,000 is invested in the scheme. In an analogous manner, the return in terms of interest would amount to 171,500 for an amount of 500,000 invested over a period of five years. This simple example demonstrates the effect the compounding on an investment made in mutual funds that helps in reaping exceptional returns for an investor over a period of time.

On the other hand, had the same amount of money been invested in any scheme that offered simple interest, the investor would have earned a mere 50,000 at the rate of 10% at the end of five years.

The power play of time and investment amount

The results of compounding interest can be amplified by a greater quantum, simply by increasing the amount of investment each year. This seemingly magic trick works s by the simple use of mathematics and percentages, which denotes the compounding effect of a mutual fund investment.

Time is the most valuable and rewarding asset that proves to be a bonus for an investor in mutual funds. The effect of compounding produces such mass and unintuitive results that one can only gasp and exclaim about the magic of compounding for once. Going by historical performance, long term investing in mutual funds is more rewarding for an investor as the added returns, generate even higher corpus fund, on which an investor earns his returns.

Should you go for investing in mutual funds?

If you do have some spare money which could find better use in an investment portfolio, rather than stay idly stacked in low-interest bearing funds or savings account, investing in mutual funds is definitely a strong and promising proposition for you. In fact, mutual funds investments, especially through SIPs (Systematic Investment Plans), which requires small, yet steady investments each month for an extended period, have proved to be the best way for creating substantial wealth in the long run.

With the effect of compounding, you could earn an expansive range of returns, hardly envisaged in an ordinary investment.


Let the Power of Compounding Work in Your Favour


We have often heard the saying ‘money does not grow on trees’, but have you heard the saying ‘money grows on trees of patience?’ Add patience to the process of compounding and you may as well start believing that money does grow on trees!

Compounding is a simple but very powerful concept. Unlike the simple interest method, in compound interest method the rate of interest is paid on principal amount plus the accumulated interest.  So, over a period of time, the money invested in a compound interest scheme gives far better returns than those yielding simple interest. It is, however, important to note that it takes time to accumulate wealth, and compounding does not work overnight.

How long you remain invested matters a lot

To understand this better let us compare two investment scenarios:

Aayush invests INR 5, 000 per annum, from the age of 25 to 35 at the yearly compounded rate of 10%. He stops investing after that but lets the money remain in the scheme, which keeps growing his investment by 10%. Amey, on the other hand, starts to invest in the same scheme at 40 and continues till he turns 60.

Who do you think would have generated greater wealth?

Well, although Amey invested in the scheme for twice as long as Aayush, he could accumulate only a little over INR 3,15000 by the time he turned 60 years, whereas, Aayush, at 60, was able to build a corpus of approximately INR 9, 50,000!

Compounding works the best when you start investing early.

Compounding with SIP

Generally, people are averse to investing a lump-sum amount for a long duration as it deprives them of liquid cash. Mutual funds have resolved this dilemma by introducing the Systematic Investment Plan (SIP). SIPs allow you to invest in any mutual fund by making smaller periodic investments instead of a large one-time investment. Since it involves less money flowing out, it does not significantly affect other financial commitments. In addition to the ease of investing, SIPs also derive the maximum advantage of the compounding effect.

To illustrate, if you make a small SIP investment of INR 1, 000 a month in a mutual fund that is giving an average return of 10%, your portfolio will grow up as follows:

Years Invested Cost of Investment (INR) Corpus Size (INR)
10 1, 20, 000 2, 06, 552
20 2, 40, 000 7, 65, 697
30 3, 60, 000 22, 79, 325
35 4, 20, 000 34, 08, 277
40 4, 80, 000 58, 96, 780


Did you see the power of INR 1, 000?

Compounding, especially in SIPs, greatly helps when the investment, even a small sum, is done regularly for a long period. See, how the money started growing by leaps and bounds after the completion of 20 years!

Understanding the power of compounding can take you on a journey to becoming a millionaire. But remember, compounding is a long-term investment strategy and gives best results only after ten years or more.

Remember the following talisman to benefit from the power of compounding through the ease of SIPs:

Start now, Invest regularly and be Patient.

Mint it Like Joshua Vaz!


Studies vs Sports has always been a topic of debate between parents and their children, with Sports losing to Studies, almost always.

Well, parents are concerned that if their children pursue sports, they would not be able to make a good living as inspite of years of hard work, only a few players, in any sport, steel the limelight.

But parents may take a leaf from the young football icon, Joshua Stan Vaz, who not just chose football as his career – a professional football and futsal player, he is also the General Secretary and a Coach at Youth Futsal Academy, Goa – but also built his first million bucks by the time he turned 25!

Putting an end to the entire controversy over Sports vs Studying, Joshua is showing others the way to be financially secure and follow one’s dreams.

But how did Joshua earn his million bucks while shooting the ball in the net?

Well, he adopted financial literacy.

In other words, at a young age, Joshua learnt the trick of creating substantial wealth – investing small sums of money consistently.

“My journey to wealth creation started at the age of twenty-one in December 2011. I knew nothing about finances and wasn’t interested much in the topic, either,” shares Joshua who, like other boys of his age, was not interested in the matters of finance.

But three years later, Joshua attended a seminar by Dr. Celso Fernandes and a whole new world of possibilities opened for him. Just after the seminar, Joshua chalked out his financial goal.

“I began investing small amounts through SIPs in various different schemes, keeping in mind my financial goal to become a millionaire by 2020,” he shares, “I had this drive and passion inside me that was so strong that I soon became a very aggressive investor.”

Under the guidance of his financial mentor, Joshua kept investing in mutual fund schemes, slightly increasing the SIP amount whenever possible. He also continued dribbling the ball on the soccer field.

In next three years, Joshua’s little money saplings grew to become self-sustaining trees. But he didn’t stop investing. He raised his financial goal to become a crorepati along with his family.

“Today, I, along with my family, have already become millionaires before my goal of 2020. I have crossed the Rs. 50-lakh milestone, and we, as a family, plan on conquering the 1 crore mark we have set for ourselves soon,” Joshua proudly reveals.

The principle of constant investing, couple with the magic of compounding inherent in mutual fund investments, has helped Joshua and his family to realize their goal of attaining financial freedom. He now wants to educate other youngsters on financially securing their future.

“Over the years, I have advised many of my friends and my family to speak about attaining financial freedom to their colleagues. I ask them to share my story to show how starting with a small SIP at a young age can do wonders for you later on in life,” he says.

Like Joshua, Nave Marg Financial Services, too, is working towards creating awareness about financial literacy in the state of Goa – especially amongst school students. The Super Young Achievers Conclave, a Nave Marg initiative, to be held in November this year, is targeted at addressing the students, and parents, on the importance of embracing financial discipline and help them take definite steps towards securing financial independence.

Event Details:

When: 12th November 2017

Where: Main Auditorium, Ravindra Bhavan, Fatorda, Margao

Registration Fee: Rs 300/- for students | Rs 500/- for Others

(Includes Tea, Lunch and free giveaways)


Penny’s Worth


A penny, or, in our country, a rupee, seldom attracts our attention. We dream of millions and billions of rupees. Hence, neglected, the poor penny is ignored and squandered nonchalantly.

But the real power of a penny is understood by only a blessed few. They are the alchemists who know how to turn a penny into hundreds and thousands and even millions!

Don’t lose your heart, yet. The elixir of these wealthy alchemists can be accessed by anyone, provided you look in the right direction.

“Compound interest is the eighth wonder of the world. He who understands it, earns it . . . he who doesn’t . . . pays it.”

  Albert Einstein

Yes, it is the compound interest that helps turn a penny turn into millions, over a period of time.

But how does compounding work?

Well, in a basic interest system, when you invest your money, say in a bank’s savings account, you earn interest on the principal amount invested by you. At the end of the term of the deposit, you get your principal as well as interest earned on that principal during the tenure of the deposit.

Now, in a compounding interest system, during the tenure, you not just earn interest on the principal sum, but also additional interest on the interest earned during the tenure.

For instance, INR 20,000 invested in a scheme paying simple interest at an annual rate of 10% for 5 years will fetch you:

20,000 + (20,000 X 10% X5) = INR 30,000

However, the same amount invested for the same period at the same rate (paid annually) in a scheme paying compound interest will fetch you:

Year 1: 20,000 + (20,000 X 10%) = INR 22,000

Year 2: 22,000 + (22,000 X 10%) = INR 24,200

Year 3: 24,200 + (24,200 X 10%) = INR 26,620

Year 4: 26,620 + (26,620 X 10%) = INR 29,282

Year 5: 29,282 + (29,282 X 10%) = INR 32,210.2

In ten years, the investment in a simple interest yielding scheme will fetch you INR 40,000, while a compound interest scheme will grow your money to INR 51,874.85. The divide between the returns from both the schemes grows phenomenally after twenty years when the simple interest yielding scheme gives you a measly INR 60,000, while the scheme offering compound interest will grow your portfolio to INR 134,550!

In the present day, mutual fund investments, especially through SIPs (Systematic Investment Plan), offer everyone an opportunity to mint additional money and create massive wealth over a long period of time, say ten years or more. This is possible because of the inherent element of compounding present in the way mutual funds work.

In the illustration above, we have assumed yearly compounding of interest and the rate of interest to be 10%. However, over a horizon of 10 – 15 years, mutual funds have given returns to the tune of 15% and more. Also, the magic of compounding works even better with SIPs because the effects of compounding work on a monthly basis. This means that regular mutual fund investments, over a long period, actually turn pennies into thousands, and eventually, to millions.

Now, you too can become a millionaire. All you need is small yet regular monthly investments, under the guidance of a financial expert.

If you are young, in school or college, this is the best time to start investing in mutual funds through SIPs and reach your first million mark before you turn thirty.